Centerpoint Towers to Become Lofty Apartment Complex Following Sale to Cleveland Company

Categories: Get Real Estate
centerpoint towers 2.jpg
Image: Jaime Peachey
Zaremba Group, the Cleveland company that bought the unfinished Centerpoint towers in Tempe for $30 million this week, plans to rent out the units once planned as condominiums.

The real estate company's Scottsdale office hasn't returned our call yet, and the guy from Cleveland who knows something, Zaremba president Joe Urbancic, is still in an airplane on his way home from the Valley, the Cleveland office says.

Meantime, the Phoenix Business Journal quoted Kent Chantung of Zaremba's local office as saying both towers and the ground-floor retail space will be finished by next summer.
"We will market predominantly to students and upper classmen and anybody else who wants to live in a great environment like Tempe," Chantung said.

The sale is expected to close no later than October 15, and Chantung expects construction activity to begin then.

The previous developer, Tempe Land Company, estimated that completing both towers would cost $75 million. Zaremba's apparently got the dough. And it's experienced at building apartment complexes.

So Centerpoint won't be as fancy as Ken Losch, one of the original developers, thought it would be. But at least a few lights will be on in the towers.

At first, probably, very few. With both towers complete, that'll be about 375 units to fill. Coming soon to the towers, we predict: A giant "move-in special" banner.

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7 comments
botanybay
botanybay

Smart thinking guys. Rentals? I wonder how much stuff'll get thrown over the railing during drunken parties to see how far it'll splat on impact (and how many drunken girls will end up on the concrete).

Ben
Ben

That's called natural selection, it has nothing to do with whether or not something is a condo or majestic metallic trash bin of group sex and beer pong.

Zippy
Zippy

Darwin is happy

Bobbiethedog
Bobbiethedog

your completely right, i had 20,000 on a condo on the 12th floor of the smaller tower, and am not getting it back. But im sure they would rather the kids falling to their deaths.

botanybay
botanybay

I predict at least 2 falling-oriented deaths in the first year. They've already stated that their target market is ASU students, and they'll soon find plenty. It'll basically be a massive tall dorm with no supervision and plenty of immature kids.

botanybay
botanybay

There really isn't much that security can do to a person who lives in an apartment that they rent and pay for themselves. If they want to throw a party and have people hnaging off the patio, a security guard can only call the cops. The mgmt company "might" be able to evict them, but it'd take months to do. And besides, it might just be a guy's first party that ends up being his last.

If they went bankrupt, and you were out your 20k, then you've got no standing with the new owners whatsoever. I'd imagine you'll get whatever miniscule amount of money your $20k was in comparison to the overall debt. It'll be $30MM / whatever % you had of the total debt.

They need to determine what rent rates will get them the monthly revenue they'll need, and whoever is willing to pay that will be a tenant, pure & simple. You'd be just like anyone else. Owning a condo is one thing. People don't tend to shit on the floor and hurl watermelons over the balcony when they happen to own the property. Renters are different. I can't imagine you'd still want to live there when it's a huge rental tower. Imagine the world's tallest dorm hall, (but no RAs). The cops will probably have to have a couple of guys standing-by down at the street on Friday and Saturday nights.

Bobbiethedog
Bobbiethedog

Wouldn't be surprised. As for supervision I sure hope they have some sort of security, i mean before the towers went bankrupt, the plan was amazing - with the bottom being open to the public with stores and a wine bar, and the security guards. it also has an underground parking garage, if ASU students are there, i wonder who is going to get priority over them, Im certainly hoping people like me whom have already graduated at 22, and have put $20,000 down to the original 'condos' get some give.

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